Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options

Should your company become a benefit corporation? In a comprehensive set of law review opinions, this installation of Business Law & Ethics Corner uncovers several fundamental issues to consider. First, the main premise for the benefit corporation--the legal preeminence of the shareholder primacy norm--may be unfounded. Second, benefit corporations may increase director liability and company costs. Third, contrary to the stated goal of such laws, benefit corporations do not empower stakeholders, and therefore are not substantially different from traditional corporations. Many legal analysts argue that, paradoxically, benefit corporations actually inhibit corporate social responsibility efforts by perpetuating the myth that business corporations do not have the flexibility to pursue social missions, and by claiming to, but failing to, empower stakeholders. They argue that the benefit corporation form is likely to increase corporate greenwashing, and that it enhances public cynicism about all corporations by creating competing sets of 'beneficial' and 'other' corporations. In the face of widespread acclaim for the benefit corporation, both corporate directors and researchers should take these significant concerns into account.

Authors :: Rae Andre

Topics :: Leadership & Managing People

Tags :: Organizational culture, Public relations, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options" written by Rae Andre includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Corporations Benefit facing as an external strategic factors. Some of the topics covered in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options case study are - Strategic Management Strategies, Organizational culture, Public relations, Social enterprise, Social responsibility and Leadership & Managing People.

Some of the macro environment factors that can be used to understand the Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options casestudy better are - – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc

---

---

---

---

Introduction to SWOT Analysis of Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Corporations Benefit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Corporations Benefit operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

---

SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options can be done for the following purposes –
1. Strategic planning using facts provided in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options case study
2. Improving business portfolio management of Corporations Benefit
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Corporations Benefit

---

Strengths Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Corporations Benefit in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options Harvard Business Review case study are -

Training and development

– Corporations Benefit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Digital Transformation in Leadership & Managing People segment

- digital transformation varies from industry to industry. For Corporations Benefit digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Corporations Benefit has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Cross disciplinary teams

– Horizontal connected teams at the Corporations Benefit are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Innovation driven organization

– Corporations Benefit is one of the most innovative firm in sector. Manager in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

High brand equity

– Corporations Benefit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Corporations Benefit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Learning organization

- Corporations Benefit is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Corporations Benefit is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Low bargaining power of suppliers

– Suppliers of Corporations Benefit in the sector have low bargaining power. Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Corporations Benefit to manage not only supply disruptions but also source products at highly competitive prices.

Superior customer experience

– The customer experience strategy of Corporations Benefit in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Effective Research and Development (R&D)

– Corporations Benefit has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Ability to recruit top talent

– Corporations Benefit is one of the leading recruiters in the industry. Managers in the Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Highly skilled collaborators

– Corporations Benefit has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Organizational Resilience of Corporations Benefit

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Corporations Benefit does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

---

---

Weaknesses Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options are -

Skills based hiring

– The stress on hiring functional specialists at Corporations Benefit has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Lack of clear differentiation of Corporations Benefit products

– To increase the profitability and margins on the products, Corporations Benefit needs to provide more differentiated products than what it is currently offering in the marketplace.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options, it seems that the employees of Corporations Benefit don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

No frontier risks strategy

– After analyzing the HBR case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Slow to strategic competitive environment developments

– As Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options HBR case study mentions - Corporations Benefit takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Corporations Benefit has relatively successful track record of launching new products.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Corporations Benefit supply chain. Even after few cautionary changes mentioned in the HBR case study - Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Corporations Benefit vulnerable to further global disruptions in South East Asia.

High bargaining power of channel partners

– Because of the regulatory requirements, Rae Andre suggests that, Corporations Benefit is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Interest costs

– Compare to the competition, Corporations Benefit has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Corporations Benefit is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Need for greater diversity

– Corporations Benefit has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

---

Opportunities Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities highlighted in the Harvard Business Review case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Corporations Benefit in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.

Low interest rates

– Even though inflation is raising its head in most developed economies, Corporations Benefit can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Corporations Benefit can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Learning at scale

– Online learning technologies has now opened space for Corporations Benefit to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Corporations Benefit to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Corporations Benefit is facing challenges because of the dominance of functional experts in the organization. Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Manufacturing automation

– Corporations Benefit can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Loyalty marketing

– Corporations Benefit has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Corporations Benefit can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Corporations Benefit can use these opportunities to build new business models that can help the communities that Corporations Benefit operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.

Building a culture of innovation

– managers at Corporations Benefit can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Corporations Benefit can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Leveraging digital technologies

– Corporations Benefit can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

---

Threats Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options are -

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Corporations Benefit with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Technology acceleration in Forth Industrial Revolution

– Corporations Benefit has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Corporations Benefit needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Corporations Benefit can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options .

Easy access to finance

– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Corporations Benefit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Corporations Benefit.

High dependence on third party suppliers

– Corporations Benefit high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options, Corporations Benefit may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Corporations Benefit business can come under increasing regulations regarding data privacy, data security, etc.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Corporations Benefit needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.

Environmental challenges

– Corporations Benefit needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Corporations Benefit can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.

Increasing wage structure of Corporations Benefit

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Corporations Benefit.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Stagnating economy with rate increase

– Corporations Benefit can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

---

Weighted SWOT Analysis of Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Corporations Benefit needs to make to build a sustainable competitive advantage.

--- ---